Combating cybercrime in African airline payments

African airlines are facing a significant threat from cybercrime, with millions lost annually to payment fraud. A recent report by Visa in collaboration with the African Airlines Association (AFRAA) sheds light on the vulnerabilities facing these airlines and offers solutions to address the issue, ultimately boosting revenue and improving passenger payments. Michael Berner, Head of Southern and East Africa at Visa, shared insights from the report in an exclusive interview with CNBC Africa. The report highlights the critical need for investment in educating consumers on fraud awareness and deploying advanced technology solutions to combat cyber threats. Berner emphasized the pivotal role of people in cybersecurity, emphasizing the importance of empowering end consumers with knowledge and awareness. Visa has invested approximately $12 billion in cybersecurity measures over the years, working closely with industry players, including airlines, to enhance fraud detection and protection. One of the key findings of the report is the importance of building a robust payment infrastructure to mitigate fraud and increase airline revenue. Visa's white paper suggests that stronger payment systems can significantly reduce fraud rates and enhance overall financial performance. Berner cited an example where the implementation of AI-based fraud detection technology led to a drastic reduction in fraud rates for an African airline, underscoring the effectiveness of innovative solutions. Visa is actively engaged in driving innovation in the airline industry, collaborating with airlines and technology providers to deliver cutting-edge payment solutions. The company's focus on co-branded cards tailored for airlines allows consumers to earn rewards and benefits for their purchases, a strategy that has proven successful in other markets. Recent partnerships with leading airlines in Africa, such as Royal Air Maroc and Egypt Air, demonstrate Visa's commitment to expanding its footprint in the region. In addition to enhancing payment options for travelers, Visa works closely with Ministries of Tourism and airlines to promote inbound tourism and facilitate seamless transactions for visitors. By leveraging tokenized transactions and e-commerce platforms, Visa contributes to the growth of the tourism sector, boosting revenue for countries and fostering confidence among travelers. The company's data analytics capabilities also support airlines in decision-making, providing insights on potential new destinations and capacity optimization. Navigating the regulatory landscape remains a key challenge for Visa and its partners in the region. Berner acknowledged the fragmented nature of regulatory frameworks across Africa and emphasized the need for collaboration to streamline regulations, particularly in areas like visa liberalization. Simplifying travel processes and facilitating cross-border movement are crucial steps to incentivize tourism and economic growth in the region. As the threat of cybercrime looms large over African airlines, Visa's proactive approach to cybersecurity and payment innovation offers a ray of hope for the industry. By empowering consumers, leveraging advanced technology, and fostering strategic partnerships, Visa aims to combat fraud, enhance revenue streams, and ensure a seamless payment experience for passengers. With a shared commitment to security and innovation, the future of African airline payments looks promising.